The Appraisal System.Concepts of Appraisal & Appraisal Methods

Presenters: [Group 2] Roll Nos.

ARKAPAL SIL 09ARUN MOHTA 12BINIT KUMAR DAS 14ARPO MUKHERJEE 11ADITYA SINGH BAIS 13ANKUR ANAND 08

CONTENTS

Definitions

Meaning

Objectives of Performance Appraisal

Methods of Performance Appraisal

360 degree performance appraisal

Issues in appraisal system

Advantages

Disadvantages

Conclusion

According to Newstrom, “It is the process of

evaluating the performance of employees, sharing

that information with them and searching for ways to

improve their performance’’.

Definitions

Performance appraisal is the step where the

management finds out how effective it has been at

hiring and placing employees .

A “Performance appraisal” is a process of

evaluating an employee’s performance of a job in

terms of its requirements.

Meaning

Objectives of Performance Appraisal

Measuring the efficiencyMaintaining organizational

control.

Concrete and tangible

particulars about their

workAssessment of

performance

Mutual goals of the

employees & the organization.Growth & developmentIncrease harmony &

enhance effectiveness

Personal development Work satisfaction Involvement in the organization.

Employee Organization

According to:

Aims at:

1. Paired comparison

2. Graphic Rating scales

3. Forced choice Description

method

4. Forced Distribution Method

5. Checks lists

6. Free essay method

7. Critical Incidents

8. Group Appraisal

9. Field Review Method

10.Confidential Report

11.Ranking

1. Assessment Center

2. Appraisal by Results or

Management by

Objectives

3. Human Asset

Accounting

4. Behaviorally Anchored

Rating scales

Traditional Methods Modern Methods

Methods of Performance Appraisal

Paired Comparison Method

• Ranking employees by making a chart of all possible pairs of the employees for each trait and indicating which is the better Employee of the pair.

• It is useful where priorities are not clear• This method is not appropriate if a large

number of employee are required to be evaluated.

As compared to A B C

A + - +

B - + -

C + - +

For the Trait “Quality of work”

A - + +

B + - +

C + + -

As compared to A B C

For the Trait “Creativity”

+

+

++

+

+

+

+ +-

-

-

--

- +

- -

Person rated Person rated

Ranking employees by paired comparison Method

Graphic or Linear Rating Scales

• A scale that lists a number of traits and a range of performance for each. The employee is then rated by identifying the score that best describes his or her performance for each trait.

• It includes the employee characteristics and employee contribution

Graphic or Linear Rating Scales Attitude

No interestIn work: consistentcomplainer

Careless: In-differentInstructions

Interested in work: Accepts opinions & advice of others

Enthusiastic about job & fellow-workers

Enthusiastic opinions & advice sought by others

Decisiveness

Take decisions in consultation with others whose views he values

Slow to take decisions

Take decisions after careful consideration

Takes decisions promptly

Take decisions without consultation

0 5 10 15 20

0 5 10 15 20

Criteria Rating

1.Regularity on the job Most Least

Forced choice method

• Always regular• Inform in advance for delay• Never regular• Remain absent• Neither regular nor irregular

No. of employees

10% 20% 40% 20% 10%

poor Belowaverage

average good Excellent

Force distribution curve

Forced distribution method

Ex: A fire, sudden breakdown, accident

Workers Reaction scale

A Informed the supervisor immediately 5

B Become anxious on loss of output 4

C Tried to repair the machine 3

D Complained for poor maintenance 2

E Was happy to forced test 1

Critical Incident method

Staff AppraisalName . . . . . . . Job Title . . . . . . . Department . . . . . . . . . . . . Date of Review . . . . . . . Age . . . . . .. . Years in present jobSection I Appraisal Of Performance

Note to Appraiser1. Appraisal must cover the period of the preceding 12 months2. Consideration to every function & responsibility of the job3. An objective factual assessment of an employee’s improvement or

deterioration

Section II Promotability & Potential

Promotability1. Promotion now2. Within 2 years3. Within 5 years4. Unlikely to qualify for promotion

Section III Career Development

Section IV Notes on Interview with employee

Section V Comments on & Endorsement by Reviewing Authority

Specimen of Staff Assessment Form [Descriptive Essay Type]

Performance subordinate peers superior customerDimension

Leadership ^ ^

Communication ^ ^

Interpersonal skills ^ ^

Decision making ^ ^ ^

Technical skills ^ ^ ^

Motivation ^ ^ ^

Field review method

Management By Objectives

The MBO concept, as was conceived by Drucker, reflected a management philosophy which values and utilizes employee’s contributions. Application of MBO in the field of performance appraisal is a very recent thinking.

MBO Process

Set organizational goalsDefining performance targetPerformance reviewFeedback

Performance Points Behavior

Extremely good

7 Can expect trainee to make valuable suggestions for increased sales and to have positive relationships with customers all over the country.

Good 6 Can expect to initiate creative ideas for improved sales.

Above average

5 Can expect to keep in touch with the customers throughout the year.

Average 4 Can manage, with difficulty, to deliver the goods in time.

Below average 3 Can expect to unload the trucks when asked by the supervisor.

Poor 2 Can expect to inform only a part of the customers.

Extremely poor

1 Can expect to take extended coffee breaks & roam around purposelessly.

Behavioral Anchored Rating Scales

360 degree performance appraisal

360 degree performance appraisal

These companies are using 360 Degree Performance Appraisal Method

Examples of 360 degree performance appraisal method

WiproInfosysReliance Industries

Maruti UdyogHCL TechnologiesWyeth Consumer Health (WCH)

Issues in appraisal system

Appraisal Design

Formal and informal

Whose performance?

Who are the raters?

What problems?

How to solve?

What to evaluate?

When to evaluate?

What methods?

AdvantagesProvide a record of

performance over a period of

time.

Provide an opportunity

for a manager to

meet & discuss

performance

Provide the employee

with feedback

about their performanc

e

Provide an opportunity

for an employee to

discuss issues and to clarify

expectations

Can be motivational

with the support of a good reward

and compensati

on

If not done appropriately, can

be a negative experience.Very time

consuming, especially for a

managerSubject to rater errors & biases.

If not done right can be a complete waste

of time.Can be stressful for

all involved

Disadvantages

Conclusion Because many of the more conventional performance

appraisal methods have often proved unpopular with those being appraised and evaluators a like, 360 is gaining popularity with many managers and employees.

It offers a new way of addressing the performance issue. When used with consideration and discipline, feedback

recipients will feel that they're being treated fairly. In addition, supervisors will feel the relief of no longer carrying

the full burden of assessing subordinate performance. The combined effect of these outcomes should result in

increased motivation, which in turn improves performance.

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